Money · RATIOXA GLOSSARY
Deflation
Decline in the general price level, which can change real debt burdens and incentives.
Simple definition
Decline in the general price level, which can change real debt burdens and incentives.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
When prices fall, the real purchasing power of an unchanged cash amount rises.